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Advance tax

11 October 2019

if a salaried person deducted TDS , and his total tax above 10,000 then what amount of Interest u/s 234 B , C is leviable upon him as he did not pay any advance tax and pay his all tax only through TDS Deduction?

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 11 October 2019

No interest liability when the aggregate tax liability after deduction of TDS, doesn't exceed Rs. 10,000/-; which in the particular case is NIL...

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CA Dhruva Kalamanji (Chartered Accountant ) (1996 Points)
Replied 11 October 2019

No advance tax payment because 100% tax liability is taken under tds

Akshat Varaiya (229 Points)
Replied 11 October 2019

When total tax after deducting tds is lower than 10,000 then no need to pay advance tax
But if it is more than 10,000 then you have to pay on 15th of last month of every quarter 15%, 45%, 75%, 100% respectively
Failing which 1% pm interest is charged for the difference amount not paid
There is a relief for 1st two quarters that you have to not pay interest if you have paid 12% and 36% advance tax respectively.

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 11 October 2019

1. The above explanation of yours will be applicable only when the Net tax liability is more than Rs. 10,000.
2. Let's say your tax liability comes to Rs. 20,000. This entire Rs. 20,000 tax liability is covered under TDS u/s 192. Every month this tax liability deducted via sec 192. Now your net tax liability comes to Nil after deduction of TDS.
3. So, in this case, no need for payment of advance tax since tax liability is taken care of by deduction of TDS every month.
Please correct me if the above solution has an alternative view.

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